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Microsoft (MSFT) Stock Moves -1.85%: What You Should Know
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Microsoft (MSFT - Free Report) closed the latest trading day at $409.44, indicating a -1.85% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 2.12%. Meanwhile, the Dow experienced a drop of 1.51%, and the technology-dominated Nasdaq saw a decrease of 3.26%.
Prior to today's trading, shares of the software maker had gained 5.57% over the past month. This has lagged the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 5.78% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. In that report, analysts expect Microsoft to post earnings of $3.09 per share. This would mark year-over-year growth of 3.34%. Our most recent consensus estimate is calling for quarterly revenue of $64.45 billion, up 14.04% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.04 per share and revenue of $277.39 billion, indicating changes of +10.51% and +13.16%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. Microsoft currently has a Zacks Rank of #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 32. For comparison, its industry has an average Forward P/E of 31.63, which means Microsoft is trading at a premium to the group.
Investors should also note that MSFT has a PEG ratio of 2.11 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.4.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Microsoft (MSFT) Stock Moves -1.85%: What You Should Know
Microsoft (MSFT - Free Report) closed the latest trading day at $409.44, indicating a -1.85% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 2.12%. Meanwhile, the Dow experienced a drop of 1.51%, and the technology-dominated Nasdaq saw a decrease of 3.26%.
Prior to today's trading, shares of the software maker had gained 5.57% over the past month. This has lagged the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 5.78% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Microsoft in its upcoming earnings disclosure. In that report, analysts expect Microsoft to post earnings of $3.09 per share. This would mark year-over-year growth of 3.34%. Our most recent consensus estimate is calling for quarterly revenue of $64.45 billion, up 14.04% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.04 per share and revenue of $277.39 billion, indicating changes of +10.51% and +13.16%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Microsoft. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% lower. Microsoft currently has a Zacks Rank of #3 (Hold).
Investors should also note Microsoft's current valuation metrics, including its Forward P/E ratio of 32. For comparison, its industry has an average Forward P/E of 31.63, which means Microsoft is trading at a premium to the group.
Investors should also note that MSFT has a PEG ratio of 2.11 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.4.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.